VAT Registration UAE | Fiscal Accounting and Bookkeeping

UAE VAT Registration

VAT Consulting, Fiscal, Dubai UAE

The UAE has always considered being a tax haven for businesses. So, when VAT was introduced this year most of the businesses and individuals were perplexed. However, this is a wrong understanding that UAE is a tax-free country. There were quite a few existing taxes in UAE like property tax, municipality tax, and customs duties. VAT is one of the major steps taken towards the development of UAE as a diversified economy and to reduce its dependency on oil and hydrocarbon sector. VAT has made the tax laws much stronger and effective.


VAT (Value Added Tax) made its debut on January 1, 2018, in UAE. UAE along with other GCC nations introduced a Unified VAT Law agreement. The rate of the VAT is fixed at a standard rate of 5%. Criteria to register for the VAT for businesses are as follow us:

  • Mandatory: Taxable supplies and imports exceeds AED 375,000 per annum
  • Voluntarily: Taxable supplies and imports exceed AED 187,500 per annum

What is VAT?

VAT is a consumption-based indirect tax. It is a tax on the goods and services levied at the point of sale. It is right now used in 180 countries around the world as VAT or as a variation. For the end user it is exactly same as a general sales tax, however, VAT is considered a more sophisticated tax and overcomes many issues present in general sales tax.

In GCC nations, VAT is imposed on most of the supplies and imports of goods and services, making some exemptions. VAT is linked to a product based on the values additions at different stages of production and distribution starting from raw material to final product. Thus, VAT is imposed on each step of the supply chain. The ultimate cost of the VAT is borne by the end consumer. However, the role of business here is to act as a collection agent between government and consumer. Businesses are required to collect and maintain proper accounts of the same.

Why you should register?

If the total value of taxable supplies exceeds the mandatory threshold limit of AED 375,000 or anticipated to exceed then you must register for VAT. Otherwise, you will be inviting some serious tax evasion penalties for noncompliance. As a tax advisor in UAE, we suggest you must avoid that at all cost. FISCAL being one of the leading VAT Consultancy services in Dubai suggest that even if your business currently doesn’t fall into any of the criteria mentioned by FTA, you should still consider registering your business under VAT. Benefits of registering under VAT are:

  • Your business and staff will be more equipped and prepared.
  • It increases your credibility as a business.

Why do you need a VAT Consultant in Dubai?

Preparing for VAT is a process which involves not just your finance department but all the core departments. You may already have registered your business under VAT. However, it is still in your favour that you hire an FTA certified Tax Advisor in Dubai. Your VAT consultant in Dubai must understand the implications and solutions for complexities related to the VAT.

Along with this, it is essential for a business to include VAT training in Dubai for staff members to be VAT ready. There are many nitty gritty of VAT which your employees need to understand. Since it is the first year of VAT implementation there is still ample time to get them equipped with VAT knowledge. Vat Training in Dubai provides a comprehensive understanding of the VAT system, covering all the necessary aspects bespoke to your business.

The key reasons to hire someone for VAT consulting in Dubai.

  • For registration (if you have not registered your business yet)
  • For periodic filing of returns
  • Understanding rules and regulations of the VAT is complicated, you will need expert VAT consultant to assist you in various steps, for example, transitional rules, double taxation rules etc.
  • The first year is always tough there are chances that you may overlook any area of importance which would eventually attract penalties for non-compliance.
  • For company formation.
  • VAT law is extensive and complicated, it’s advisable to leave to the experts.

How can we assist you?

We are an FTA approved Tax and VAT agency in UAE. Our multinational team of experts provides the complete solution for all your VAT needs and as well as being profitable. Our Tax Services in UAE include:

  • Registration with local tax Authorities
  • Tailor-made solutions as per your area of business
  • VAT Impact Assessment
  • VAT Implementation
  • VAT Impact Assessment Review Report
  • Comprehensive VAT Training to Staff

Free Consultation